CHOOSING A RETIREMENT PLAN

• Friday, April 16, 2021
• Category: Tax & Pension Law

If you’re a small employer or self-employed, you may be busy trying to grow your business and haven’t even thought about starting a retirement plan. Adopting a retirement plan benefits both the employer and employees.

• Employer contributions are tax deductible.
• Assets in a plan grow tax-deferred to retirement.
• A plan helps to attract and retain employees.
• Small employers may receive a tax credit for new plans of up to $5,000/year for three years for the cost of setting up a new plan.
• A Saver’s Credit of up to 50% is available for contributions made by low- to moderate- income employees

Some plans may be a better fir than others, depending on many factors. For more information, check out the plan comparison chart in Choosing a Retirement Solution for Your Small Business [PDF].

Ref: Employee Plan News, Internal Revenue Service, February 26, 2021

Kindly visit our Tax & Pension Law and Business Planning/Law websites or contact one of our Business Corporate Law Attorneys, Philadelphia and Tax & Pension Law Attorneys, Philadelphia for more information on this topic.